Chapter One

McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
 Learning Objectives

Menjelaskan kegunaan informasi cost management

pd setiap fungsi dr ke 4 fungsi mgt dan berbagai jenis
organisasi dg penekanan pd fs manajemen strategis.

Menjelaskan lingkungan bisnis kontemporer dan

pengaruhnya thd manajemen biaya.

Menjelaskan tehnik-2 manajemen kontemporer dan

penggunaannya pada manajemen biaya utk merespon
lingkungan bisnis kontemporer.

1-2
 Learning Objectives
(continued)
Menjelaskan berbagai jenis strategi kompetisi.

Describe the professional environment of the

management accountant, including professional
organizations and professional certifications

Understand the principles and rules of professional

ethics and explain how to apply them

1-3
 Management accounting is a profession
that involves partnering in management
decision making, devising planning and
performance management systems, and
providing expertise in financial reporting and
control to assist management in the
formulation and implementation of an
organization’s strategy.

1-4
 Management accounting adalah suatu
profesi yg melibatkan kemitraan dlm
pengambilan keputusan manajemen,
menyusun perencanaan dan sistem manajemen
kinerja, serta menyediakaan keahlian dalam
pelaporan keuangan dan pengendalian untuk
membantu manajemen dlm memformulasikan
dan mengimplementasikan suatu strategi
organisasi.

1-5
Akuntan manajemen adalah profesi akuntansi dan
keuangan yg mengembangkan dan menggunakan
informasi manajemen biaya untuk membantu
mengimplementasikan strategi organisasi.

Informasi Manajemen Biaya mencakup informasi

keuangan mengenai Biaya & pendapatan dan
informasi nonkeuangan mengenai retensi pelanggan,
produktivitas, kualitas dan faktor-2 penentu utama
kesuksesan lainnya bagi organisasi.
1-6
 Introduction to Strategy
Success comes from developing and
implementing an effective strategy aided by
management accounting methods
Clear mission statement
Strategy is a roadmap to achieve a company’s
mission
Management accountants can help a company
be successful
Key to success is having decision-relevant
information

1-7
 Cost Management Information
Serves all management functions

Information a manager needs to manage

effectively
Financial and nonfinancial
 Financial information alone shows a short-term focus
Developed under the direction of the controller for
the Chief Financial Officer (CFO) of the organization

1-8
 Typical Organization Chart
Chief Executive Officer (CEO)

Chief Financial Vice President Vice President

Officer (CFO) for Marketing for Operations

Controller Chief Information

Treasurer
Officer (CIO)

Cost Management
Financial Reporting
Financial Information Systems
Other Reporting Obligations (e.g., tax)
1-9
 Cost Management vs.
Financial Reporting
Financial reporting
External users
Emphasis on accuracy and compliance
Cost management
Internal users
Emphasis on usefulness and timeliness, key
characteristics of decision-relevant information
Challenge for controller to reconcile these
potentially conflicting roles
1-10
 Four Functions of Management

Cost management information is

assembled to aid management in the
following functions:
 Strategic management
 Planning and decision-making
 Management and operational control
 Preparation of financial statements

1-11
 Management Functions
Strategic management
Most important management function
Involves identifying and implementing goals and
action plans to maintain a competitive advantage
Monitoring of Critical Success Factors (CSFs) is
necessary
Critical to a firm’s success due to global competition
and rapidly changing markets
Informasi MgtBy dibutuhkan utk membuat keputusan
strategisyg berkaitan dgn pemilihan produk, metode
produksi, tehnik &saluran pemasaran, penilaian
profitabilitas pelanggan dan masalah-2 jk panjang
1-12
 Management Functions (continued)
Planning and decision-making
Information MgtBy dibutuhkan utk mendukung
keputusan-2 rutin mengenai penggantian peralatan,
pengelolaan arus kas, penganggaran pembelian bahan
baku, penjadwalan produksi dan penetapan harga.
Management and operational control
Information MgtBy dibutuhkan sebg dasar yg wajar dan
efektif utk menemukan operasi yg tidak efisien dan
memberi penghargaan serta motivasi bagi manajer yg
paling effective.
Preparation of financial statements
Information MgtBy dibutuhkan utk mendptkan
catatan akuntansi yg akurat ttg persediaan dan aset
lainnya dgn memenuhi persyaratan pelaporan dlm
rangka menyusun Lap. Keuangan & utk digunakan
dlm 3 fungsi mgt lainnya. 1-13
 Types of Organizations

Service
Service Government
Governmentand
and
Manufacturers
Manufacturers Merchandisers
Merchandisers firms
firms Not-for-profit
Not-for-profit

Wholesalers
Wholesalers Retailers
Retailers

1-14
 Changes in the Contemporary Business
Environment
1. Shift to a global business environment
 Economic interdependence and increased
competition
2. Lean Manufacturing
 Just-in-time (JIT) inventory methods, inventory
reduction and quality control
 Emphasis on speed-to-market (i.e., time-based
competition)
 Flexible manufacturing systems

1-15
 Changes in the Contemporary Business
Environment (continued)
3. Importance of information technology
 Increased use of the internet has reduced
processing time and facilitated information
exchange
4. Focus on the customer
 Consumers expect functionality, quality and
customization
 Shorter product life-cycles have intensified
competition

1-16
 Changes in the Contemporary Business
Environment (continued)
5. Shifts in management organization
 The focus has shifted from financial measures and
hierarchal command-and-control organizations to
nonfinancial measures and flexible organizational
structures
6. Social, political, and cultural considerations
 Changes include a more diverse workforce, a
renewed sense of ethical responsibility, and
increased deregulation of business

1-17
The Strategic Focus of Cost Management: Kaplan’s
Phases for Developing Cost Management Systems
Stage One Cost-management systems are basic
transaction reporting systems
Stage Two Cost-management systems focus on
external reporting–decision-usefulness
of cost-management data is limited
Stage Three Cost-management systems track key
operating data and relevant cost
information for decision-making
Stage Four Strategically relevant cost-
management information is an integral
part of the system 1-18
The Strategic Focus of Cost Management: Kaplan’s
Phases for Developing Cost Management Systems
Tahap pertama & kedua memusatkan peran
akuntan manajemen dlm hal pelaporan &
pengukuran.
Tahap ketiaga sudah bergeser ke arah
pengendalian operasional
Tahap ke empat, tujuan utama, akuntan
manajemen sebagai bagian integral dari
manajemen, bukan pelapor tap sebagai mitra
bisnis secara penuh, bekerja pd tim manajemen
utk mengimplementasikan strategi perusahaan.
1-19
How do the Changes in The Contemporary
Business Environment Affect Cost Management?
The management accountant’s role:
Provide strategically relevant cost management
information to help the organization keep up
with the ever-changing environment  p 15
exhibit 1.7
Thirteen Contemporary Management
Techniques developed and employed by the
management accountant

1-20
1. The Balanced Scorecard and Strategy Map
2. The Value Chain
3. Activity Based Costing and Management
4. Business Intelligence
5. Target Costing
6. Life Cycle Costing
7. Benchmarking
8. Business Process Improvement
9. Total Quality Management
10. Lean Accounting
11. The Theory of Constraints
12. Enterprise Sustainability
13. Enterprise Risk Management
1-21
 Competitive Strategies
Startegi adalah seperangkat tujuan dan rencana
spesifik yg apabila dicapai akan memberikan
keunggulan kompetitif yg diharapkan.
Strategy must have a long-term focus and adapt to
the changing environment (misi -> tujuan kinerja
Cost management information should be used to
develop and monitor strategic information

1-29
 Cost Leadership—outperform competitors by
producing at the lowest cost, consistent with quality
demanded by the consumer
 Differentiation—creating value for the customer
through product innovation, product features,
customer service, etc. that the customer is willing to
pay for

1-30
Cost Leadership : menghasilkan laba secara
berkesinanbungan pada tingkat harga yg lebih rendah
sehingga membatasi pertumbuhan kompetisi dlm
industri melalui kesuksesannya dlm mengurangi
harga dan merusak profitabilitas kompetitor.
Contoh perusahaan yg terkenal dlm hal ini : Wal
Mart, Dell, Texas Instruments
Kelemahan potensial dari strategi ini: kecenderungan
memotong biaya yg dpt menurunkan permintaan thd
produk/jasa.
1-31
Differentiation : kadang disebut strategi
kepemimpinan produk yg mengacu pada inovasi dan
fitur dalam produk, atau disebut customer focus /
customer solution utk menunjukkan bahwa
perusahaan telah berhasil pada beberapa dimensi
layanan pelanggan.
Contoh : Rolex, BMW, Bentley, Tiffany
Kelemahan : perlu rencana pemasaran yg terus
menerus dan agresif utk menekankan diferensiasinya.
1-32
 Competitive Strategies (continued)
Aspect Cost Leadership Differentiation
Strategic Broad cross section Focused cross
Target of the market section of the market
Basis of Lowest cost in the Unique product or
competitive industry service
advantage
Product line Limited selection Wide variety
Production Lowest possible cost Innovation in
emphasis and essential differentiating
features products
Marketing Low price Premium price and
emphasis innovative features 1-33
 The Five Steps of
Strategic Decision Making
1. Determine the Strategic Issues Surrounding the
Problem
2. Identify the Alternative Actions
3. Obtain Information and Conduct Analyses of
the Alternatives
4. Based on Strategy and Analysis, Choose and
Implement the Desired Alternative
5. Provide an On-going Evaluation of the
Effectiveness of implementation in Step 4.

1-34
 Implementing a Strategy
There are two main competitive strategies:
cost leadership
differentiation
Saat perusahaan telah menentukan strategi
kompetitif yg akan dilaksanakan, maka
implementasi dari strategi tsb salah satunya
adalah :
SWOT Analysis
Focus on execution
Value-chain analysis
Balanced scorecard (BSC)
1-35
 SWOT Analysis
SWOT analysis merupakan prosedur sistematis utk
mengidentifikasi critical success factors (CSFs) yg
dimiliki perusahaan.
Strenght = ketrampilan dan suberdaya yg dimiliki
perusahaan yg jauh melebihi perusahaan lain.
Kompetensi utama (core competencies) merupakan
bidang keunggulan kompetitif yg dpt dijadikan dasar
utk membentuk strategi perusahaan secara
keseluruhan.
Weaknesses = kekurangan dlm ketrampilan &
kompetensi penting tertentu yg relatif dimiliki
perusahaan kompetitor.

1-36
 SWOT Analysis
SWOT analysis merupakan prosedur sistematis utk
mengidentifikasi critical success factors (CSFs) yg
dimiliki perusahaan.
Opportunities = situasi menguntungkan yg penting
dlm lingkungan perusahaan.
Threats = situasi yg paling tidak menguntungkan di
lingkungan perusahaan.

1-37
 SWOT Analysis
Tahap 1 : Identification of critical success factors
(CSFs) tied to strategy—for example:
Product innovation
Quality
Skill development
Tahap 2 : Identification of quantitative measures
for the specified CSFs—for example:
Number of design changes or new patents
Number of defects or number of returns
Number of training hours or amount of skill
performance improvement

1-38
 SWOT Analysis (continued)
The SWOT analysis has four areas:

S – strengths/internal Look at product lines,

management, R&D,
W – weaknesses/internal manufacturing, marketing,
and strategy
O – opportunities/external
Look at barriers to entry,
T – threats/external intensity of rivalry among
competitors, substitute
goods, and
customer/supplier
bargaining power

1-39
 Execution
CSFs yg dipilih tergantung pada strategi yg dipilih:
Cost leadership: operational performance and quality
Differentiation: customer satisfaction and innovation
Differentiated firms must pay close attention to
marketing and product development
Management accountants assist by gathering,
analyzing, and reporting on relevant information
Can be improved through benchmarking and total
quality improvement (e.g., Malcolm Baldrige Quality
Award)

1-40
 Chapter Summary
Cost management information is used in all four
of the management functions and is important in
the pursuit of a firm’s mission and goals

The contemporary business environment expects

fast results and has influenced the role of the
management accountant

There were several contemporary management

techniques in which cost management responds to
the changing business environment
1-44
 Chapter Summary (continued)

• The two main competitive strategies are cost

leadership and differentiation
• There are five steps for strategic decision making
• The management accountant looks to professional
organizations for guidelines and professional
support
• Professional certifications can be obtained in many
areas, but there are three main areas applicable to
management accountants

1-45